Search
Advertisement
| Digg | Facebook | Stumble It! | Delicious del.icio.us | Fark
E-mail | Print
Aug 6, 2008 3:38 pm US/Pacific

Getting Out Of Credit Card Debt

David Schauer

QUESTION:  We are in credit card debt what can we do?

ANSWER: First item to look at, is what are you spending money on currently that is not a absolute necessity.  Once you've determined this, I would cut those things, until you get a handle on your debt.  Secondly, look around the house for what you can sell that will allow you to pay down your credit cards that much faster.  Once you've tightened the belt, I would then start a payment plan.   The payment plan will consist of you paying the most you can possibly pay on the lowest balance card that has the highest interest rate.  Once that card has been paid off, move to the card with the next highest interest rate.  Continue this until all cards are paid off.  I would suggest going forward, that you pay few things if anything with a credit card, and force yourself to pay with cash for almost everything.  I find that if you have to pay with cash, you will be more discerning over what is truly a "need", and what is a "want".
____________________

Money Matters is provided by:

David Schauer, CFA, MSFA, CFP®
Financial Planner
Hanson McClain
E-mail questions to moneymatters@kovr.com

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

From Our Partners

© MMVIII Sacramento Television Stations Inc. All rights reserved.